(CercleFinance.com) – Morgan Stanley raised its recommendation on Zalando from ‘line weight’ to ‘overweight’ on Friday, while maintaining its price target of 26 euros on the stock.
In a study devoted to the European distribution sector, Morgan Stanley says it sees a buying opportunity in the stock, which has lost more than 50% of its value over the last 12 months despite rather resilient results.
‘Even if demand remains sluggish, Zalando has enough levers to preserve its margins, while the market anticipates a fall of around 40% in its results this year,’ argues the research office.
Knowing that the title of the German online ready-to-wear group is now trading on the basis of a 20% discount compared to Inditex, analysts say they perceive a favorable risk/return profile.
Copyright © 2024 CercleFinance.com. All rights reserved.
The information and analyzes distributed by Cercle Finance only constitute a decision-making aid for investors. Cercle Finance cannot be held responsible directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional advisor before making any investment. This indicative information does not in any way constitute an inducement to sell or a solicitation to buy.
Did you like this article ? Share it with your friends using the buttons below.
